Energy in Canada

Energy plays a fundamental role in our lives. From the food we eat and the homes
we live in to the functioning of Canada’s industries: everything requires energy
in one form or another. Canada’s landscape is rich with diverse and abundant energy
sources which are used to fuel the economy. In 2017, the energy sector made up 9.2%,
or $175 Billion, of Canada’s Gross Domestic Product (GDP). The energy sector directly
employed 1.5%, (or 276,000 jobs) of the national workforce and total
employment, including indirect jobs, is estimated at 4.9% (or 900,000 jobs).

In 2017, the energy sector
made up 9.2% of
Canada's Gross Domestic Product or$175 Billion
In comparison, the manufacturing sector made up 10%, or $198 Billion.

Canada is currently ranked the sixth-largest crude oil producer and the ﬁfth-largest
natural gas producer in the world. Our country is also a large net exporter of energy;
exporting production that is surplus to the current and future needs of Canadians.
Energy products made up 17% of Canada’s total exports and were valued
at $71.4 billion in 2017.

Canadian
crude oil production in 2018: 4.6 million barrels per day

Canadian
natural gas production in 2018: >16 billion cubic feet per day.

The NEB also regulates 1,462 km of international power lines.

Most Canadian power lines fall within provincial jurisdiction because roughly
90% of the electricity produced in Canada is consumed domestically. However, international
demand for Canadian power which is mostly generated from renewable sources is expected
to increase in coming years.

Canada has considerable non-hydro renewable resources including wind, biomass,
solar, tidal, wave, and geothermal. Canada is the second-largest hydroelectricity
producer in the world and is ranked seventh with respect to installed wind power
capacity. Policy incentives and declining costs continues to drive signiﬁcant growth
in the use of renewable generating technologies.

In 2018, roughly80%
of the electricty in Canada was non-emitting.

The breakdown of generation source is as follows:

The NEB regulates over 73,000 pipelines – a little under 10% of the total
length of pipelines in Canada. If a pipeline system crosses provincial or international
boundaries, it is regulated by the NEB. If a pipeline system is contained within
a province, it is generally under the jurisdiction of a provincial regulator (e.g.
pipelines located solely in British Columbia are regulated by the BC Oil and Gas
Commission; those in Quebec are regulated by a number of provincial entities, including
the Régie de l’energie du Québec).

Canada’s energy sector is evolving. Increasing energy efﬁciency, the changing
nature of the economy and other factors are contributing to the country’s decreasing
energy intensity (energy use per units of GDP). Falling costs and climate policies
are facilitating the deployment of renewable energy such as wind and solar into the
grid.

In the future, Canada is projected to keep expanding its energy production capacity,
both from renewable and fossil fuel sources. The energy sector as a whole will keep
evolving and be shaped by demand, supply, technology and policies.

Energy Sector by Province and Territory

In Alberta, Newfoundland and Labrador, and Saskatchewan, the energy sector contributed,
respectively, 21.61%, 23.5% and 16.09% of provincial GDP. This is signiﬁcantly more
than in the rest of Canada. In these provinces, the oil and gas sector makes up a
major part of economic activity.

The moderately high share of GDP in British Columbia, Manitoba, and Quebec are
explained by their hydroelectric assets, which allows them to generate substantial
revenues from electricity exports to the U.S and neighboring provinces. British Columbia
is also a major natural gas producer and exporter. New Brunswick’s relatively strong
energy sector comes from a mix of electricity surpluses and crude oil reﬁning.

Alberta also has the largest share of direct energy sector employment of all provinces.
In 2017, it directly accounted for 6% of the province’s employment. Saskatchewan’s
and Newfoundland and Labrador’s energy sectors came in second and third position,
with 1.55% and 0.85% of total provincial employment.